Private remittances to Armenia in 2015 slash by 30.1% or $520 million to about $1.208.470 billion, central bank

01.02.2016 18:45

YEREVAN, February 1. /ARKA/. Private remittances sent to Armenia in 2015 via banks slashed by 30.1% or $520 million from the previous year to about $1.208.470 billion, the Central Bank of Armenia said in a statement, posted on its official website today.

It said also remittances sent from Armenia to other counties via banks fell by 6.6% from 2014 to $317 million. Thus, the net inflow of private remittances last year amounted to $891.390 million, a decrease of 35.8% when compared to 2014.

Remittances to Armenia, sent largely by Armenian labor migrants in Russia and some other countries have been dwindling for the second year in row. Thus, in 2014 they dropped by 7.6% from the previous year to $1.7 billion.

The dramatic decline is blamed on the steep depreciation of the Russian ruble. For example, in 2015 one Russian ruble was worth from 5.9 to 8 drams. In 2014, the ruble was worth 10.98 drams and in 2013 it traded at 12.88 drams.

Nonetheless, about 76% of all the remittances last year came as usual from Russia. More specifically, they decreased by 36.1% to about $915.9 million, while remittances from Armenia to Russia grew by 0.6% to $204.57 million.

Private remittances are known to be the largest source of hard currency inflows into Armenia. According to the Central Bank, from 2000 to 2013 remittances from abroad made 15-18% of Armenia’s GDP. According to some experts, the Armenian economy may grow at the rate of 6-7% annually given that remittances grow by 10-15%. -0-